Trailing Stop *Definition:* A trailing stop is a risk management technique used to lock in profits by automatically adjusting the stop-loss price as the market moves in favor of the trade. *How it works:* 1. Set an initial stop-loss price. 2. Define a trailing distance (e.g., 20 pips). 3. As the market moves in favor of the trade, the stop-loss price moves with it, maintaining the trailing distance. 4. If the market reverses, the stop-loss price remains fixed, limiting potential losses. *Types of Trailing Stops:* 1. Fixed Trailing Stop: Trailing distance remains constant. 2. Dynamic Trailing Stop: Trailing distance adjusts based on market volatility. 3. Percentage Trailing Stop: Trailing distance based on percentage of current price. *Benefits:* 1. Locks in profits. 2. Reduces risk. 3. Adjusts to changing market conditions. 4. Minimizes emotional decisions. *Example:* Buy EUR/USD at 1.1000 with initial stop-loss at 1.0950. Trailing distance: 20 pips. Market moves to 1.1100. New stop-loss: 1.1080 (20 pips below current price). *Platform Implementation:* 1. MetaTrader (MT4/MT5): Trailing Stop feature built-in. 2. TradingView: Trailing Stop feature available. 3. Other platforms: May require custom indicator or EA. *Trailing Stop Strategies:* 1. Conservative: Tight trailing distance (10-20 pips). 2. Moderate: Medium trailing distance (20-50 pips). 3. Aggressive: Wide trailing distance (50-100 pips).